Related Terms
DEFINITION
Electronic Identity Verification (eIDV)
Electronic Identity Verification (eIDV) is the process of verifying an individual’s identity through digital means by verifying government-issued IDs, biometric data, or other credentials. It constitutes the first step of eKYC and allows financial institutions to confirm the identity of customers remotely while still complying with AML, CFT and similar regulations.
EIDV tools commonly rely on OCR technology to read documents such as IDs as well as pattern-recognizing tools and/or AI to compare the likeness of customers to their government ID, passport or driver’s license photo. As such, eIDV and eKYC are generally the most present with technologically forward banks.
Synonyms
Digital ID verification
Acronyms
eIDV
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Synonyms
Digital ID verification
Acronyms
eIDV
Examples
A customer wants to open a bank account and uses the bank’s online portal to send in their application. After filling out their basic information, the bank’s EIV tool prompts them to take a picture of their ID and then of themselves. The EIV tool compares their image with the one in their ID and establishes that they are who they claim to be. It also reads their ID and compares the information with the relevant official database. This is where the EIV step concludes and leads into the rest of eKYC, such as watchlist screening.
FAQ
What are the common methods used in eIDV?
Scanning and verifying government-issues IDs, facial recognition and liveness detection, cross-referencing with official databases, and two-factor verification.
How does eIDV improve security in banking?
EIDV tools allow banks to offer self-serving portals while still maintaining a strict KYC framework, which is essential for both staying compliant and safe from financial fraud. For example, by utilizing a liveness test, eIDV systems can make it a lot more difficult for a threat actor to steal someone’s identity and take out a loan in their name.
Is eIDV the same as eKYC?
No, eIDV is only one part of eKYC, which also includes processes such as watchlist screening, transaction monitoring, and account reviews, to name a few.
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